Narrow-scope amendments (Annual Improvements)

The objective of this project is to clarify the requirements in IAS 34 on segment information for total assets and liabilities for each reportable segment to enhance consistency with the requirements in paragraph 23 of IFRS 8 Operating Segments.

The IFRS Interpretations Committee (previously known as the IFRIC) received a request to clarify the requirements in IAS 34 regarding disclosure of segment assets. The concern raised was that IAS 34 could be read as currently requiring disclosure of segment assets regardless of whether that amount is regularly provided to the chief operating decision maker.

The Interpretations Committee disagreed that this is the way in which IAS 34 should be read and decided to propose an amendment to IAS 34 to clarify that disclosure of segment assets for a particular segment is required in interim financial reporting only when there has been a material change from the amount disclosed in the last annual financial statements for that segment and when the amounts are regularly provided to the chief operating decision maker. Consequently, the Interpretations Committee recommended the IASB amend IAS 34 in the Annual Improvement project to align the disclosure requirements in IAS 34 with those of IFRS 8.

In the light of the comments received on the Exposure Draft published in June 2011, the Interpretations Committee further recommended to the IASB that it should include a similar requirement for the disclosure of 'total segment liabilities' for a particular reportable segment, to make this requirement consistent with the requirement in IFRS 8. The Interpretations Committee also recommended that the IASB should require that the proposed amendment should apply retrospectively rather than prospectively.

The IASB discussed the proposed amendments to IAS 34 and decided to amend IAS 34 as part of the Annual Improvements to IFRSs 2009-2011 cycle to align the disclosure requirements in IAS 34 for total segment assets and liabilities with those of IFRS 8. The IASB also decided to require that the amendments should apply retrospectively rather than prospectively.